Business
Silvercrest Asset Management Group Inc. Reports Q4 and Year-End 2023 Results
NEW YORK, March 07, 2024 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the
About this update from Silvercrest Asset Management Group Inc.
[{"type":"text","content":"NEW YORK, March 07, 2024 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter and year ended December 31, 2023. Business Update After the volatile and difficult market environment of 2022, we hoped had 2023 would lead to improved markets, helping to recover both Silvercrest’s discretionary assets under management (“AUM”) as well as top line revenue. The year 2023 was unusual. Equity market gains were highly concentrated in a handful of large cap technology companies. As a result of such narrow leadership and economic uncertainty, during the third quarter 2023 earnings call, I stated we could face challenging market conditions at Silvercrest for another year. During the fourth quarter of 2023, company participation in equity market gains broadened significantly. Progress has continued into 2024, setting the stage for a better environment for our business. During the fourth quarter of 2023, Silvercrest’s discretionary AUM rose by $1.4 billion, or 6.8%, to $21.9 billion. Silvercrest’s total AUM increased by $2.1 billion, or by 6.7%, to $33.3 billion during the fourth quarter. For 2023, Silvercrest’s discretionary AUM increased by $1.0 billion, or 4.8%. Our total AUM increased during 2023 by 15.2%, or $4.4 billion, to $33.3 billion from $28.9 billion at the end of 2022. The total 2023 increase was attributable to market appreciation of $3.8 billion and net client inflows of $0.6 billion. Silvercrest's revenue for the year, however, significantly lagged increases in assets under management due to broad market gains concentrated in the fourth quarter of 2023. Silvercrest primarily bills quarterly in advance. Revenue decreased by $5.8 million, or 4.7%, to $117.4 million for 2023 from $123.2 million for 2022. This decrease was driven by market depreciation in prior years, partially offset by market appreciation and net client inflows during 2023. Revenue for the fourth quarter of 2023 was flat year over year. Our financial results in the fourth quarter also were negatively affected by adjustments to total compensation for 2023, with total recurring cash compensation as a percentage of revenue rising to 59% from Silvercrest’s typical interim accrual rate of 55%. Silvercrest completed the year with Adjusted EBITDA1 of $26.9 ...